Where Should You Outsource Your Functions – National or International Providers?

Outsourcing has become an established necessity for businesses large and small. There’s simply no way to do everything in-house and do it well without spending an exorbitant amount of time and money in the process. Even if you spend that time and money, there’s no guarantee that your in-house staff will provide superior results to what an outsource service provider could offer. Outsourced companies are made up of specialists and experts, often with more experience and knowledge than the employees you’d be able to hire. However, should you outsource to a national or international provider?

The Changing World of Outsourcing

Once upon a time, outsourcing implied sending your business process overseas. However, that’s not necessarily true any longer. Many processes can be outsourced through nearshoring, which is really just a fancy name for outsourcing to companies within your region or nation rather than to an international company. Nearshoring can offer some benefits, including reducing any potential language barriers. Of course, you’ll find that you’re paying more for your outsourcing if you work with providers in your area, and saving money is still one of the more important benefits of sending business processes out of house anyway.

International versus National

In the debate of international versus national outsourcing providers, you need to consider several different factors. Language barriers certainly count, but you’ll find that most international companies worth their salt speak your language without a problem. So, communication isn’t generally an issue as long as you’re working with a reputable company dedicated to serving the needs of the international community. It’s when you start considering smaller, lesser known companies that you generally encounter that language barrier.

Another thing to consider with international outsourcing providers is whether they’re familiar with the governmental and industry regulations, laws and guidelines that apply to your business. The medical and IT industries are good examples of this. Again, an international outsourcing provider generally stays abreast of regulation and legal changes in the countries the company serves. That makes sense, as they would lose business if they did not.

When it comes to national outsourcing providers, you run as much risk that they will not be familiar or up to date on regulations, laws and other governing factors for your industry. In fact, there might be a greater chance of this, as national companies often don’t have to stay as “on top of their game” as international firms do.

In the End

In the end, working with a national or international outsourcing provider all comes down to preference and how much you’re willing to spend. National companies generally cost more, simply because of the cost of living and the cost of doing business. International companies can offer lower rates, but there’s generally no corresponding drop in quality or service. So, for businesses interested in ensuring they receive the highest quality outsourcing services for the best price, going international is the better option. Of course, you still need to ensure that you choose the right company – research all potential candidates and make an informed decision.

 – Back Office Pro